Israel Folau has chosen not to appeal against the decision to terminate his contract.

AAP: Dave Hunt

Israel Folau says a lack of "confidence" in Rugby Australia's (RA) ability to treat him fairly is the reason why he will not appeal against its decision to terminate his contract, with court action now a possibility.

Key points:

Israel Folau's Rugby Australia contract was terminated last week for a breach of the players' code of conduct

Folau had until midday on Monday to lodge an appeal but chose against such a move

RA had earlier released a statement, confirming it had terminated Folau's contract after he failed to lodge an appeal.

"As Folau has not notified the panel of his intention to appeal, the code of conduct process has now formally concluded," the statement read.

"With the code of conduct matter complete, Folau's employment contract will be terminated."

Folau, who played 73 Tests for the Wallabies, fronted a three-person tribunal at the beginning of May, comprising of chair John West, Rugby Australia's representative Kate Eastman and the Rugby Union Players' Association-appointed John Boultbee.